Exploring the dynamics of price sensitivity: the role of social factors in consumer behaviour

Key factors influencing consumer price sensitivity include customer satisfaction, loyalty, service quality, perceived value, and switching costs. This study investigates how five social factors influence consumer price sensitivity. To gather data, purposive and snowball sampling techniques were employed, and confirmatory factor analysis (CFA) along with structural equation modelling (SEM) was used for analysis. The structural model consists of six latent constructs: service quality and perceived value as exogenous variables, and switching costs, customer satisfaction, customer loyalty, and price sensitivity as endogenous variables. The analysis revealed that six relationships between these variables were statistically significant, while seven were not. The findings underscore the importance of social factors in shaping consumer behaviour, attitudes, and decision-making. However, to improve the generalisability of these findings, future research should consider broader variables and a more diverse sample. This study contributes to a deeper understanding of price sensitivity and provides a foundation for further exploration in this area.